Page 99 - P6 Slide Taxation - Lecture Day 5 - VAT Part 1

Special rules – Instalment credit agreements

Instalment credit agreements

Suspensive sales and finance leases

• supply for payment in future/instalments over a period

• payment incl. finance charges

• amount payable > cash value of supply (sold @ profit)

Risk of ownership Suspensive sale

passes to purchaser • date when terms of agreement has been

complied with
Difference Finance lease

• date lease agreement has been concluded